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Legal & General Group PLC (GB:LGEN)
LSE:LGEN

Legal & General (LGEN) AI Stock Analysis

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GB:LGEN

Legal & General

(LSE:LGEN)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
262.00p
▼(-1.54% Downside)
Legal & General's overall stock score reflects a mix of financial challenges and positive market sentiment. The company's financial performance is a concern due to declining revenues and cash flow issues. However, technical indicators show bullish momentum, and corporate events suggest confidence in future growth. The high P/E ratio indicates overvaluation, but the attractive dividend yield provides some balance.
Positive Factors
Diverse Revenue Streams
The company's diverse revenue streams, including insurance premiums and asset management fees, provide stability and reduce dependency on a single market segment, enhancing resilience against sector-specific downturns.
Responsible Investing
A focus on responsible investing aligns with growing global trends towards sustainability, potentially attracting more clients and investors who prioritize ESG factors, thus supporting long-term growth.
Stable Debt-to-Equity Ratio
A stable debt-to-equity ratio suggests that the company maintains a balanced approach to leveraging, which can help manage financial risk and support long-term financial health despite high leverage.
Negative Factors
Declining Revenue
Declining revenues indicate potential challenges in maintaining market share or product competitiveness, which could impact long-term growth and profitability if not addressed.
Negative Free Cash Flow
Negative free cash flow raises concerns about the company's ability to fund operations and growth initiatives internally, potentially leading to increased reliance on external financing.
Low and Declining Profit Margins
Low and declining profit margins suggest operational inefficiencies or pricing pressures, which could undermine profitability and limit the company's ability to reinvest in growth opportunities.

Legal & General (LGEN) vs. iShares MSCI United Kingdom ETF (EWC)

Legal & General Business Overview & Revenue Model

Company DescriptionLegal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates in four segments: Legal & General Retirement (LGR), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Legal & General Insurance (LGI). The LGR segment offers annuity contracts with guaranteed income for a specified time; longevity insurance products; lifetime mortgages; lifetime care plans; retirement interest only mortgages; and workplace savings scheme that provides corporate pension scheme solutions. The LGIM segment offers index fund management; active fixed income funds and liquidity funds; active equity management; solution and liability driven investment; multi-asset funds; corporate pension scheme solutions; and real assets. The LGC segment provides investment strategy and implementation, and direct investment and structuring services. The LGI segment offers protection products, such as health, disability, critical illness, and accident; individual term assurance; reinsurance; savings and death benefits; and annuities. It is also involved in the unit trust and institutional fund management, mortgage finance, treasury, building project and modular housing development, general insurance, and open-ended investment businesses. In addition, the company engages in the investment, operation, management, trading, and letting and operation of leased real estate; and construction of commercial buildings, financial intermediation, pension tracing and transfer, insurance agents and brokers, fund general partner, commercial lending, venture capital investing, contractual scheme, investor alternative investment fund, collective asset-management, and investment management activities; and provision of investment advisory, business information consultancy, and technology services. Legal & General Group Plc was founded in 1836 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyLegal & General generates revenue through multiple key streams. The primary source is its life insurance and annuity products, where it earns premiums from customers and collects investment income from the assets backing these policies. Additionally, the company has a significant asset management division, managing investments for both individual and institutional clients, which generates fees based on the assets under management (AUM). Legal & General also earns income from its general insurance operations and consulting services. Significant partnerships with various financial institutions and corporations enhance its market reach and distribution capabilities, further contributing to its earnings. The company benefits from economies of scale in its operations, allowing it to manage costs effectively while maximizing revenue.

Legal & General Financial Statement Overview

Summary
Legal & General faces challenges with declining revenues and profitability, reflected in low margins and fluctuating income. The balance sheet showcases a heavily leveraged position, which could pose risks if asset values decline. Cash flow issues, with negative free cash flow in recent years, raise concerns about liquidity and operational efficiency. Overall, the company needs to address these financial weaknesses to ensure stability and growth.
Income Statement
45
Neutral
Legal & General has seen significant revenue fluctuations, with a decline from 2020 to 2024, indicating instability in revenue streams. The net profit margin has been low and declining, with a sharp decrease in net income from 2023 to 2024. The absence of EBIT and EBITDA margins in 2024 is concerning and suggests potential operational challenges.
Balance Sheet
60
Neutral
The balance sheet shows a decreasing stockholders' equity from 2019 to 2024, which raises concerns about the company's financial leverage. However, the debt-to-equity ratio remains relatively stable, and the equity ratio indicates a small but consistent portion of equity in the asset base. The high level of total assets compared to equity suggests potential risk due to high leverage.
Cash Flow
35
Negative
The cash flow statement highlights negative free cash flow in recent years, particularly a significant drop in 2023 and 2024. This points to potential liquidity issues. The operating cash flow has also been negative in several years, indicating challenges in generating cash from operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.78B12.96B11.07B10.19B9.29B9.28B
Gross Profit5.68B12.59B10.72B9.90B8.99B8.98B
EBITDA845.00M704.00M423.00M1.26B2.92B1.50B
Net Income116.00M191.00M457.00M783.00M2.05B1.61B
Balance Sheet
Total Assets557.02B544.17B522.10B506.32B575.46B563.63B
Cash, Cash Equivalents and Short-Term Investments0.0018.58B22.54B36.26B16.49B43.29B
Total Debt4.71B7.70B6.12B5.48B5.39B5.84B
Total Liabilities554.60B540.66B517.31B494.18B564.51B553.66B
Stockholders Equity2.41B3.55B4.83B5.56B10.98B10.00B
Cash Flow
Free Cash Flow-1.22B-4.54B-14.48B20.28B-374.00M4.14B
Operating Cash Flow-1.13B-4.45B-14.24B20.46B-169.00M4.30B
Investing Cash Flow285.00M239.00M-422.00M-226.00M133.00M-457.00M
Financing Cash Flow-1.35B331.00M-556.00M-1.03B-1.50B-29.00M

Legal & General Technical Analysis

Technical Analysis Sentiment
Positive
Last Price266.10
Price Trends
50DMA
250.21
Positive
100DMA
244.65
Positive
200DMA
242.72
Positive
Market Momentum
MACD
4.33
Positive
RSI
64.23
Neutral
STOCH
42.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LGEN, the sentiment is Positive. The current price of 266.1 is above the 20-day moving average (MA) of 260.71, above the 50-day MA of 250.21, and above the 200-day MA of 242.72, indicating a bullish trend. The MACD of 4.33 indicates Positive momentum. The RSI at 64.23 is Neutral, neither overbought nor oversold. The STOCH value of 42.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LGEN.

Legal & General Risk Analysis

Legal & General disclosed 8 risk factors in its most recent earnings report. Legal & General reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Legal & General Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£3.74B11.786.50%7.21%-7.11%0.45%
77
Outperform
£6.47B18.238.30%5.37%4.78%-4.86%
76
Outperform
£2.07B32.824.75%4.91%14.05%-3.07%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
£2.53B-2,142.22-0.05%3.40%-28.04%-102.43%
61
Neutral
£14.84B66.236.81%8.29%-38.98%-31.14%
61
Neutral
£6.97B-121.54-1.53%7.09%9.86%-134.41%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:LGEN
Legal & General
266.10
52.95
24.84%
GB:RAT
Rathbones Group PLC
2,155.00
583.14
37.10%
GB:SDR
Schroders
458.40
155.48
51.33%
GB:ABDN
Aberdeen Group
224.40
98.28
77.93%
GB:QLT
Quilter
192.80
51.47
36.42%
GB:MNG
M&G Plc
299.00
116.69
64.00%

Legal & General Corporate Events

Executive/Board ChangesRegulatory Filings and Compliance
Legal & General Retail CEO Exercises Performance Share Awards and Retains Shares
Neutral
Jan 7, 2026

Legal & General has disclosed that Laura Mason, CEO of Retail and a person discharging managerial responsibilities, has exercised nil-cost options granted under the company’s 2014 Performance Share Plan from awards made in 2019 and 2020. On 5 January 2026 she exercised options over a total of 419,472 shares, selling 201,640 shares at £2.621979 to cover tax and dealing costs and retaining 217,832 shares, with the transactions carried out on the London Stock Exchange; the announcement reflects standard UK MAR transparency obligations around executive incentive awards and share dealings.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Legal & General Executives Acquire Shares Under Employee Plan
Neutral
Jan 5, 2026

Legal & General Group Plc has disclosed that several senior executives, including the Group Chief Risk Officer, Group General Counsel and Company Secretary, Group Chief Financial Officer, Group Chief Operating Officer, and the CEO of Legal & General Institutional Retirement, have purchased ordinary shares in the company through the Legal & General Group Plc Employee Share Plan. The transactions, executed on 2 January 2026 on the London Stock Exchange at a price of £2.64 per share for relatively small volumes, form part of routine employee share participation and are reported in line with UK Market Abuse Regulation requirements, underscoring ongoing executive alignment with shareholder interests and regulatory transparency.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
Legal & General Discloses Vesting of CEO António Simões’ Recruitment Share Award
Neutral
Jan 2, 2026

Legal & General has confirmed the vesting of part of a one-off recruitment-related share award granted to Group Chief Executive Officer António Simões, compensating him for incentive awards forfeited on leaving his previous employer. Under a plan structured on terms equivalent to the company’s Share Bonus Plan, 85,256 shares from a larger conditional award of 1,229,642 shares vested on 31 December 2025, with dividend equivalents delivered as additional shares, and 47,433 of the resulting 100,647 shares sold to cover tax and national insurance obligations while 53,214 shares were retained; the transaction, carried out on the London Stock Exchange at £2.616789 per share for the sale portion, is disclosed under UK Market Abuse Regulation and underscores the group’s adherence to best practice governance in executive remuneration.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Regulatory Filings and Compliance
Legal & General Confirms Total Voting Rights at Year-End 2025
Neutral
Jan 2, 2026

Legal & General Group Plc has reported that, as at 31 December 2025, its issued share capital comprised 5,697,611,241 ordinary shares of 2.5 pence each, all carrying voting rights, and that it held no shares in treasury, resulting in a total of 5,697,611,241 voting rights. The company noted that this figure should be used by shareholders as the denominator when assessing whether they must disclose any holdings or changes in their interests under the FCA’s Disclosure Guidance and Transparency Rules, underpinning ongoing transparency in the ownership structure and regulatory compliance for investors.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Regulatory Filings and Compliance
Legal & General Chair Sir John Kingman Buys Shares via ISA
Neutral
Jan 2, 2026

Legal & General Group has disclosed that its chair, Sir John Kingman, purchased 628 ordinary shares in the company on 2 January 2026 via an individual savings account (ISA) at a price of £2.6182 per share on the London Stock Exchange. The transaction, reported under UK Market Abuse Regulation requirements for persons discharging managerial responsibilities, signals ongoing insider investment in the group’s equity and provides shareholders with additional transparency around board-level dealings in Legal & General stock.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Legal & General Non-Executive Directors Increase Shareholdings Under Appointment Terms
Positive
Jan 2, 2026

Legal & General has disclosed that non-executive directors Mark Jordy, Ric Lewis and Laura Wade-Gery have purchased ordinary shares in the company on 2 January 2026 under the terms of their appointments, at a price of £2.614 per share, with respective volumes of 1,006, 868 and 957 shares, on the London Stock Exchange. The transactions, reported under UK Market Abuse Regulation as dealings by persons discharging managerial responsibilities, underline ongoing board-level alignment with shareholder interests through direct equity ownership and contribute to transparency in the company’s corporate governance practices.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Business Operations and StrategyDelistings and Listing Changes
Legal & General to Fully Redeem £600m Subordinated Notes and Cancel Listing
Neutral
Jan 2, 2026

Legal & General Group Plc will redeem the remaining £12.7 million of its £600 million Fixed Rate Reset Subordinated Notes due 2064 on 2 February 2026 at the special redemption price, including accrued interest, following the earlier repurchase and cancellation of £587.3 million of the notes via a tender offer completed in September 2025. After this final redemption, no notes under this issue will remain outstanding, and their listing on the FCA’s Official List and admission to trading on the London Stock Exchange’s Main Market will be cancelled, simplifying the group’s capital structure and removing this instrument from its listed debt portfolio.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
Legal & General Announces Board Appointment of Nilufer Kheraj at Games Workshop
Neutral
Dec 19, 2025

Legal & General Group Plc has announced that Nilufer Kheraj has been appointed as a non-executive director of Games Workshop Group Plc, effective 1 January 2026, in accordance with regulatory disclosure requirements. The move highlights the continued external board responsibilities of senior figures associated with L&G, underlining the group’s wider influence across UK corporates and potentially deepening governance and strategic links between the financial services and leisure sectors.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.40 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Other
Legal & General Executives Purchase Shares Under Employee Plan
Neutral
Dec 2, 2025

Legal & General Group Plc announced the purchase of shares by several key executives under the company’s Employee Share Plan. This transaction, conducted on December 1, 2025, at the London Stock Exchange, involves notable figures such as the Group Chief Financial Officer and the Group Chief Risk Officer, indicating a continued commitment to aligning management interests with shareholder value.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Other
Legal & General Directors Acquire Shares, Signaling Confidence
Positive
Dec 1, 2025

Legal & General Group Plc announced a transaction involving the purchase of shares by three of its Non-Executive Directors, Mark Jordy, Ric Lewis, and Laura Wade-Gery. The shares were acquired under their Terms of Appointment at a price of £2.444 per share, with transactions conducted on the London Stock Exchange. This move reflects the directors’ confidence in the company’s future prospects and could potentially influence stakeholder perceptions positively.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Regulatory Filings and Compliance
Legal & General Announces Total Voting Rights Update
Neutral
Dec 1, 2025

Legal & General Group Plc announced its total voting rights as of November 28, 2025, in compliance with the FCA Disclosure Guidance and Transparency Rules. The company reported a capital consisting of 5,697,344,679 ordinary shares, each with voting rights, and no shares held in treasury. This figure serves as a denominator for shareholders to determine their interest or changes in interest in the company, reflecting Legal & General’s commitment to transparency and regulatory compliance.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
Legal & General Chair Purchases Shares, Ensuring Compliance
Neutral
Dec 1, 2025

Legal & General Group Plc announced a transaction involving its Chair, Sir John Kingman, who purchased ordinary shares into an ISA. This transaction, conducted on the London Stock Exchange, reflects the company’s adherence to UK Market Abuse Regulation, ensuring transparency and compliance in its operations.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Regulatory Filings and Compliance
Legal & General CEO Transfers Shares to Spouse
Neutral
Nov 18, 2025

Legal & General Group Plc announced a share transfer involving its Group Chief Executive Officer, António Simões, who transferred 313,947 ordinary shares to his spouse, Tomas de Zarate, at no cost. This transaction does not affect Simões’ aggregate beneficial shareholding in the company, maintaining alignment with shareholder interests. The notification complies with the UK Market Abuse Regulation, ensuring transparency in the company’s executive transactions.

The most recent analyst rating on (GB:LGEN) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Business Operations and Strategy
Legal & General Executives Purchase Shares Under Employee Plan
Neutral
Nov 4, 2025

Legal & General Group Plc announced the purchase of shares by several key executives under the company’s Employee Share Plan. This transaction, involving the Group Chief Financial Officer, Group Chief Risk Officer, Group General Counsel, CEO of Institutional Retirement, and Group Chief Operating Officer, reflects a strategic move to align the interests of management with those of shareholders, potentially impacting the company’s market perception and stakeholder confidence.

The most recent analyst rating on (GB:LGEN) stock is a Sell with a £210.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Other
Legal & General Directors Purchase Shares, Signaling Confidence
Positive
Nov 3, 2025

Legal & General Group Plc has announced the purchase of ordinary shares by three of its Non-Executive Directors, Mark Jordy, Ric Lewis, and Laura Wade-Gery, under their Terms of Appointment. The transactions, conducted on the London Stock Exchange, reflect the directors’ commitment and confidence in the company’s future, potentially impacting stakeholder perceptions positively.

The most recent analyst rating on (GB:LGEN) stock is a Hold with a £237.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Regulatory Filings and Compliance
Legal & General Announces Total Voting Rights Update
Neutral
Nov 3, 2025

Legal & General Group Plc has announced its total voting rights as of October 31, 2025, in compliance with the FCA Disclosure Guidance and Transparency Rules. The company’s capital consists of 5,697,093,456 ordinary shares, all with voting rights, and it holds no shares in Treasury. This information is crucial for shareholders to determine their interests and obligations under the regulatory framework.

The most recent analyst rating on (GB:LGEN) stock is a Hold with a £237.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Regulatory Filings and Compliance
Legal & General Chair Purchases Shares, Strengthening Governance Transparency
Positive
Nov 3, 2025

Legal & General Group Plc has announced a transaction involving its Chair, Sir John Kingman, who purchased ordinary shares into an ISA. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to transparency and compliance with the UK Market Abuse Regulation, potentially reinforcing stakeholder confidence in its governance practices.

The most recent analyst rating on (GB:LGEN) stock is a Hold with a £237.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Business Operations and Strategy
Legal & General Targets Growth in UK DC and Annuities Markets
Positive
Oct 23, 2025

Legal & General Group Plc announced its strategic focus on capturing growth opportunities in the UK’s Defined Contribution (DC) and Annuities markets over the next decade. The company aims to leverage its position as the largest UK DC asset manager and annuity provider to achieve significant growth in Retail operating profit, targeting £40-50bn in Workplace DC net flows and a 4-6% CAGR in Retail operating profit from 2024-2028. This growth is expected to shift profit mix towards fee-based earnings and enhance operating leverage, positioning Retail as a key driver of the company’s future growth.

The most recent analyst rating on (GB:LGEN) stock is a Hold with a £239.00 price target. To see the full list of analyst forecasts on Legal & General stock, see the GB:LGEN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 07, 2025